In turbulent times like these, expanding your portfolio with quality, diversified, well-priced ASX shares with a proven track record is, I believe, a good way to achieve portfolio stability. Not to mention, help provide the foundation for strong shareholder returns over the next decade and beyond.
Ansell is involved in the development, manufacturing and sale of gloves and protective personal equipment in the industrial and medical markets.
The manufacturer reported in a business update in late March that it has been experiencing high demand for its hand and body protection products, as these products are industry certified for protection against infections such as the coronavirus. This includes its single-use examination gloves and surgical gloves. These products are very likely to continue seeing strong demand over the next few months as the crisis continues. Although there has been reduced demand for some of its industrial products, the overall demand for Ansell’s product portfolio has been higher over the past few months.
This increased demand has helped drive up its share price. Despite an initial dip in its share price in February and the middle of March, at the time of writing Ansell was at a 52-week high of $34.82.
Even with this recent share price increase, I still think that Ansell offers a relatively good buying opportunity for investors with a long-term investment horizon.
Ansell’s significant size and geographic spread helps the company maintain a very strong competitive position. Also, new product lines position Ansell well to generate growth over the next few years, supported by a strong research and development program.
Brickworks has gained a strong reputation as one of the most consistently performing businesses on the ASX over the past few decades, underpinned by its diversification across a number of divisions.
The group’s Building Products division manufactures and distributes a range of bricks and other masonry products. Its property division owns a significant holding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), providing the company with a strong and steady dividend income stream.
Brickworks also has a significant stake in an industrial property trust with Goodman Group (ASX: GMG), which builds and operates a range of property for industrial businesses.
Although there is always the risk of a further downturn in the building industry, I believe that the significant fall in its share price since late February by more than 30%, now offers investors a relatively good buying opportunity.
Brickworks shares also currently offer an attractive trailing dividend yield of 4.27%, which grosses up to 6.1% with full franking.
Where to invest $1,000 right now
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Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Ansell Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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